JFE Steel Raises Cr Series Stainless Sheet Price by 10% in October

JFE Steel announced on Monday the firm raises the selling price of chrome series stainless steel sheet by 20,000 yen per tonne or 10% for SUS 430 for domestic dealers effective for October contracts. Ferrochrome price is rising. Meanwhile, the sheet supply is tight thanks to progressed inventory adjustment in the market. The firm requests the price hike to specific users. This is the first price hike in a year and a half.

The demand for chrome series stainless sheet is recovering from automobiles or electric appliances. Japanese inventory rate was 1.9 months against the shipment in August, which is said the decent level below 2 months, according to Japan Stainless Coil Center Association.

JFE Steel couldn’t pass high ferrochrome price on the selling price in summer 2008. The firm will pass rising material price on the selling price this time.

The firm’s chrome series stainless sheet output is expected to increase to near 90% for October-December compared with peak level of October 2007-September 2008. The firm’s operation rate hit bottom at 30% for January-March. The output is recovering for export, domestic automobiles and appliances from April.

Chiba area of JFE Steel’s East Japan iron works is recovering the operation rate to about 80% in present days. JFE Steel said the supply and demand is tightening when the export keeps steady for South Korea, Taiwan and South East Asia while domestic demand is increasing from automobiles.